Liquidity‚ Solvency and Profitability are the three aspects used to compare companies in a financial analysis. Their basic function is to reveal the stability of a company based on a comparison of at least two years of financial data with a company that sells products alike. The two companies must have similarities other than the products they sell; they must also be similar in popularity. “The biggest difference between each ratio is the type of assets used in the
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accessible and comprehensible. This very big data overload could seem astounding. Luckily‚ many well-tested ratios out there make the task a bit less daunting. Comparative ratio analysis helps you identify and quantify of the desert hotel company ’s strengths and weaknesses‚ evaluate its financial position‚ and understand the risks you may be taking. As with any other form of analysis‚ comparative ratio techniques are not definitive. Numerous off the balance sheet and income statement factors can play
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Tootsie Roll Industries Ratios (pg 732) The Hershey Company Ratio Interpretation and comparison between the two companies’ ratios Earnings per Share Current Ratio Hershey had net sales close to ten times those of (4‚946‚716 (51‚625 Earnings / Tootsie Roll‚ however their outstanding shares were Earnings / 492‚753 54‚296 Outstanding also an order of magnitude greater than those of Outstanding Shares) = $0.95 Tootsie Roll. Although earnings are greater for Shares) = $0.96 Hershey‚ the
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The Tootsie Roll Expansion Project; Growth to Solidify the Future ACC/561 September 26‚ 2011 Jared Jones The Tootsie Roll Expansion Project; Growth to Solidify the Future “Everyone loves the flavor of a tootsie pop” has been a popular phrase for years‚ a commercial jingle that reminds everyone of the wonderful taste‚ a memory from childhood that brings people from miles around to local candy stores seeking Tootsie rolls‚ whether it is a lollipop or a tootsie roll chocolate‚ everyone
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Hershey Company & Tootsie Roll Industries Tootsie Roll Industries Ratios The Hershey Company Ratios Interpretation and comparison between the two companies ratios Receivable Turnover Ratio 14.6 times 9.8 times Tootsie Roll has a higher Receivable Turnover Ratio which means that they have more cash on hand and are collecting on debts. Average Collection Period 25 37.24 Tootsie Roll is turning Accounts Recievable into cash 12 days faster than Hershey. Assets Turnover Ratio 0.57 1.18 Tootsie Roll’s Asset
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Tootsie Roll Industries Inc. Loan Package Tootsie Roll Industries Inc. and its branches makes and sells candy including “Andes mints‚ Junior Mints‚ Charleston Chew‚ Mason Dots‚ Sugar Daddy‚ and the ever popular Tootsie Roll‚ which has been made from the same formula for over a 100 years” (Hoovers Academics‚ 2012) Tootsie Roll Industry’s customers include a wide variety of supermarkets‚ dollar stores‚ discount warehouse clubs‚ fund-raising charitable organizations‚ and the United States
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Financial Statement Analysis Project--Hershey Corp. & Tootsie Roll Industries Liquidity Based on the ratio analysis performed‚ it appears that the Hershey Company’s liquidity is sufficient to meet cash needs and current obligations. The current ratio and current debt coverage ratios were decreasing from 2002 through 2004‚ which corresponds to an increase in short-term debt and a decrease in cash on the Company’s balance sheet over the same periods. Hershey attributes the increase in debt to
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Profitability Ratios Return on Capital Employed (ROCE) or Return on Equity (ROE) Numerator – the net profit or income‚ usually taken before tax. Capital Employed or Shareholders Equity - Designed to indicate the effective use of the shareholders capital in the business with respect ot the net profits that they have generated over the period of concern. Net Profit/Income Percentage or Return on Sales Helps to identify the impact of administrative‚ selling and distribution costs on profit
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Tootsie Roll‚ Inc. Sharon Ungar Lane‚ Bentley College Alan N. Hoffman‚ Bentley College INTRODUCTION: “Tootsie Roll’s good fortunes are an accumulation of many small decisions that were probably made right plus bigger key decisions‚ such as acquisitions‚ that have been made right‚ and a lot of luck.” Mel Gordon‚ CEO – Tootsie Roll‚ 1993 Tootsie Roll Industries‚ Inc.‚ a niche candy maker‚ has often been voted one of Forbes magazine’s “200 Best Small Companies of America.” A top quality producer
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concerned about liquidity and safety. In fact these three namely liquidity‚ profitability and safety are the main objectives of a monetary policy. Banks have to earn profits because if they don’t‚ they would not work as all the shareholders would sell off the shares if proper dividends are not earned. Hence they have to earn profits for their shareholders and at the same time satisfy the withdrawal needs of its customers. The main problem here comes is sticking the balance between liquidity and profitability
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